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In 2012, Marco Rubio Argued That He Would Be in Favor

Question 124

Multiple Choice

In 2012, Marco Rubio argued that he would be in favor of getting rid of quotas on sugar imports (a trade barrier) only if the United States got something in return from Brazil. Rubio's argument is not economically sound (consistent with economic theory) for which of the following reasons?


A) Consumers in the United States would be hurt by the higher price of sugar if the quota was removed.
B) U.S. producers that use sugar as an input (for example, Lifesavers) would benefit from a higher price of sugar.
C) A proportion of the gains to trade received by Brazil would be used to import U.S. goods and services.
D) The United States cannot benefit from trade with a country that is less productive.

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